7 AI Automation Stocks That Can Transform the Labor Market (and Your Portfolio)


  • AI automation stocks are changing the labor landscape and promise to boost portfolios in the process.
  • Nvidia (NVDA): Everything Nvidia touches on can be characterized as automation.
  • Autodesk (ADSK): The AutoCAD design giant is ahead of the curve in relation to automation.
  • Rockwell Automation (ROK): ROK stock is a pure play in the sector.
  • Continue reading to discover more AI automation stocks here!
AI Automation Stocks - 7 AI Automation Stocks That Can Transform the Labor Market (and Your Portfolio)

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Let’s start by defining AI automation. AI automation includes many processes. Those processes include robots performing repetitive tasks, known as repetitive process automation or RPA. That’s probably what most people envision when the word automation is discussed. Yet, AI automation also includes processes by which human thinking is mimicked as well as the automation of business process workflows. It’s a broad field with incredible potential and contains many stocks worth investing in.

Artificial intelligence is the most important topic currently. It will continue to be the most important topic for years to come. 

Naturally, investors are highly curious to understand the investing landscape and the companies and stocks therein. These firms and their stocks are poised to transform the labor market. AI automation will affect the labor market. Everything from blue-collar factory jobs to white-collar jobs that require more cognitive tasks will change.

Nvidia (NVDA)

Nvidia logo seen on smartphone which is placed on pile of US dollar bills. Concept. Selective focus. Stocks to buy like Nvidia
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Nvidia (NASDAQ:NVDA) provides the most powerful AI chips and has essentially cornered the market to this point. The result is that the stock has grown tremendously while continuing to have tremendous upside potential. Investors are generally aware that the biggest current opportunities are in things like data center and cloud applications, which are driving significant demand for the company’s chips.

That can be broadly classified as AI automation. However, Nvidia is concurrently making major strides in the robotics solutions realm, which is more traditionally associated with AI automation. Nvidia offers an end-to-end Robotics platform to train and deploy AI-enabled robots at scale. The firm’s Jetson hardware combines with its Isaac software to create a platform that promises to change the industry from the warehouse to agriculture to logistics and more. 

Nvidia isn’t simply supplying chips by a long stretch. The company is a tech giant that continues to assess the broader landscape for AI, including automation. It is one of the easiest recommendations to make even as share prices move nearer to $900. 

Autodesk (ADSK)

Is Autodesk Stock Still A Buy At New Highs? 3 Pros, 3 Cons
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Autodesk (NASDAQ:ADSK) develops and sells 3D design software with wide applicability across multiple industries. The rapid development of AI promises to increase the utility of that software. That is broadly why investors should consider ADSK stock as an addition to their portfolio.

Let’s get a little bit more granular about how Autodesk can help to increase automation. One of the biggest problems in the design process is the back-and-forth transfer of data. Designers use multiple tools that require data feeds in order to create constituent parts of a project. The back-and-forth transfer of that data burns up time and money in the process, creating friction. Those more interested in the subject should read the article linked here.

The thrust of the article is that Autodesk is ahead of many others concerning AI automation. It is one of the most prominent design tools and should continue to transform the labor market. In turn, that promises to increase the price of its shares, boosting portfolios in the process. 

Rockwell Automation (ROK)

A photograph of the inside of a factory showing machinery and conveyer belts representing AIMC Stock.
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Rockwell Automation (NYSE:ROK) is probably what most people imagine when it comes to automation. The stock represents a pure play investment into the kind of machines that populate factory floors. Those machines do just about anything you can imagine and have a wide application across the industry.

Rockwell Automation is in a position to transfer the labor market. The robots, software and design tools it sells will be in high demand as AI continues to be applied to factory settings in particular. It’s fair to assume that companies like Rockwell Automation will be responsible for the loss of blue-collar jobs. In the process, that will create substantial value for corporations able to reduce their labor costs.

The company didn’t explicitly mention AI once in its most recent earnings report. However, it did reaffirm previous sales growth guidance with a wide range between 0.5% to 6.5%. It’s reasonable to assume the wide variance is attributable to the potential of AI. 

SoundHound AI (SOUN)

In this photo illustration, the SoundHound logo seen displayed on a smartphone. SOUN stock
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SoundHound AI (NASDAQ:SOUN) is the automation stock currently having a moment. That moment really began to take off a few weeks ago when Nvidia revealed it had invested in the firm. 

Yet, investors were interested in SoundHound AI long before that for its ability in the emerging conversational AI space. Investors eagerly continue to search for the next growth sector beyond generative AI. Conversational AI — which simulates human conversation — is a big target. SoundHound AI is one of the biggest names in that space. The fact that Nvidia revealed an investment in the firm served to affirm what many had already suspected: Conversational AI is rife with potential.

The excitement around SoundHound AI is likely to only run higher following the company’s earnings report on Feb. 29. It showed that revenues increased by 80% in the 4th quarter. Investors will act on that data and the Nvidia investment and that should be enough to create substantial momentum for the stock.

Whether it’s a smart addition to long-term portfolios at this point remains to be seen. However, it is quickly carving out a name as a leader in the fast-emerging conversational AI space. 

Pegasystems (PEGA)

Pegasystems (NASDAQ:PEGA) is transforming the process by which enterprises acquire customers through media. Customer acquisition is one of the most important aspects of a business overall. It is also one being rapidly transformed by AI. That makes Pegasystems’ well-rated stock one to consider.

The company’s software provides AI-powered analytics to customers who seek to efficiently acquire customers through inbound, outbound and paid media channels.

Enterprises spend incredible amounts of time and human resources to contact and influence potential customers in order to bring them on board. That’s a long process in most cases. Thus, the costs associated with that process can become very substantial. 

The company is being recognized for its efforts. It was recently named the leading firm among Real-Time Interaction Managers (RTIM). RTIM helps to create a single customer view which essentially means companies are getting more granular in terms of their understanding of individuals. Theoretically, that should lead to a better understanding of customers and more targeted offers to you and me. 

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.
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Microsoft (NASDAQ:MSFT) is broadly doing a lot to improve automation. Whether by ChatGPT, through CoPilot or its Power Automate business process automation technology, it is a force. That simple truth is but another reason to consider adding Microsoft stock to your portfolio if you haven’t already. 

Chat GPT and CoPilot are more recent and better known than Microsoft Power Automate. So, let’s start with the latter. It is essentially software as a service used to automate business processes and has been around since 2019. It is part of the broader set of tools known as AI automation but is essentially business process automation. In any case, it is another part of the broader offering of Microsoft in relation to automation and AI.

One of the more salient questions about Microsoft at the moment is how much further it can rise. Bearish investors question whether its strong run over the past 12 months is sustainable. The analysts covering it have answered that question. Their consensus opinion is that Microsoft is fairly valued at the moment. However, some believe it could rise as much as 50% beyond its current price.


Source: Shutterstock

ABB (OTCMKTS:ABBNY) is another primarily industrial automation stock to consider. Shares are well represented in ETFs that seek to capture broad gains in the sector.

The company continues to progress the Internet of Things (IoT) and associated technologies. ABB is particularly close to the Industrial Internet of Things (IIoT). The company noted that roughly 20% of the data generated in industrial firms is actually analyzed. Even less of it is translated into actionable insights. That’s where the company comes in with its Genix software. 

Genix applies AI to industrial analytics to extract deeper insights from the 80% of data that goes ignored.

ABB isn’t solely a software analytics firm by any means. Instead, the company provides robotics, electrification and other product development prevalent throughout manufacturing sites globally. 

As you may have guessed, it is also a relatively stable firm and provides income to investors in the form of a dividend. Like most traditional automation stocks it can form a stable core within a given investor’s stock portfolio.

On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/7-ai-automation-stocks-that-can-transform-the-labor-market-and-your-portfolio/.

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